Question
Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $1,015 per day to
Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $1,015 per day to spend. Different flowers have different profit margins, and also a maximum amount the shop can sell. Based on past experience the shop has estimated the following NPV of purchasing each type:
NPV per bunch | Cost per bunch | Max. Bunches | |
Roses | $1 | $17 | 25 |
Lilies | $10 | $29 | 10 |
Pansies | $5 | $31 | 10 |
Orchids | $20 | $83 | 5 |
What combination of flowers should the shop purchase each day?
The profitability index for each choice is: (Round to three decimal places.)
NPV per bunch | Cost per bunch | Max. Bunches | Profitability Index (per bunch) | |
Roses | $1 | $17 | 25 | nothing |
(Round to three decimal places.)
NPV per bunch | Cost per bunch | Max. Bunches | Profitability Index (per bunch) | |
Lilies | $10 | $29 | 10 | nothing |
(Round to three decimal places.)
NPV per bunch | Cost per bunch | Max. Bunches | Profitability Index (per bunch) | |
Pansies | $5 | $31 | 10 | nothing |
(Round to three decimal places.)
NPV per bunch | Cost per bunch | Max. Bunches | Profitability Index (per bunch) | |
Orchids | $20 | $83 | 5 | nothing |
(Select from the drop-down menus in descending order of their profitability-index
values.
Round the investment amounts to the nearest integer.)
The combination of flowers the shop should purchase each day is $nothing of orchids
pansies
lilies
roses
,
$nothing
of
orchids
roses
pansies
lilies
, and
$nothing
of
lilies
orchids
pansies
roses
.
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